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Britain on Wednesday blocked Microsoft’s US$69-billion takeover of US video game giant Activision Blizzard, arguing it would harm competition in cloud gaming.
The ruling will be appealed but could potentially spell ‘Game Over’ for the blockbuster deal.
Xbox-owner Microsoft in 2022 launched its bid to create the world’s third-biggest gaming company by revenue with the takeover of Activision, owner of hit games “Candy Crush” and “Call Of Duty”, triggering antitrust concerns worldwide.
Following its lengthy probe, the UK’s Competition and Markets Authority prevented the deal “over concerns… (it) would alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come”.
Both firms said they would appeal the final verdict and expressed deep disappointment over Britain’s decision regarding the gigantic takeover, which has yet to win regulatory nods in Europe or the United States. Activision threatened to reassess its growth prospects for Britain amid chances that the deal would be blocked elsewhere following Wednesday’s ruling. The CMA on Wednesday said Microsoft’s proposed remedies over cloud gaming- which allows play over a range of devices like mobile phones and tablets – contained “significant shortcomings” and would require further regulatory oversight instead of allowing the market to decide and the industry to shape its own future. “Preventing the merger would effectively allow market forces to continue to operate and shape the development of cloud gaming without this regulatory intervention,” it added in the statement. – AFP
Online Reporter